The Implementation of the Livestock Tax Law: An Opportunity for Climate Action - Mongolia
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Mongolia’s traditional livestock husbandry takes place on vast state-owned rangelands that cover about 70 percent of the country’s territory. The sector provides the main source of income for nearly one fifth of the population and plays a central role in rural livelihoods and national food systems. However, since the 1990s rapid herd growth and unsustainable grazing practices have placed increasing pressure on fragile ecosystems. The national herd has expanded far beyond the natural carrying capacity of pastureland, contributing to land degradation and desertification. These challenges are compounded by climate change, which in Mongolia is progressing at more than the global average rate. Rising temperatures, more frequent droughts and severe winter conditions threaten livestock survival, food security and the well-being of herder families. At the same time, livestock production is the largest source of greenhouse gas emissions in the country, making the sector both vulnerable to and responsible for climate change impacts. To address these interconnected challenges, the Government of Mongolia has set long-term strategies in key policy frameworks, including Vision 2050, the Nationally Determined Contribution and the National Adaptation Plan. In 2020, the Parliament adopted the Law on Livestock Tax, which entered into force in 2021. The law was introduced to encourage more efficient herd management, stabilize livestock numbers and generate revenue for improved pasture use and animal productivity. Building on early lessons, reforms to the law are now under consideration, alongside new legislation to reduce the negative impacts of climate change on traditional animal husbandry.